Mount Logan Capital Inc.

NEOE:MLC Stock Report

Market Cap: CA$53.7m

Mount Logan Capital Valuation

Is MLC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MLC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MLC (CA$2.07) is trading below our estimate of fair value (CA$16.82)

Significantly Below Fair Value: MLC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MLC?

Key metric: As MLC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MLC. This is calculated by dividing MLC's market cap by their current revenue.
What is MLC's PS Ratio?
PS Ratio0.3x
SalesUS$143.07m
Market CapUS$38.44m

Price to Sales Ratio vs Peers

How does MLC's PS Ratio compare to its peers?

The above table shows the PS ratio for MLC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
IOU IOU Financial
1.3xn/aCA$22.7m
AFCC.H Automotive Finco
5.2xn/aCA$14.9m
MONT Montfort Capital
0.1xn/aCA$6.0m
CHW Chesswood Group
0.2xn/aCA$18.3m
MLC Mount Logan Capital
0.3xn/aCA$38.4m

Price-To-Sales vs Peers: MLC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does MLC's PS Ratio compare vs other companies in the CA Diversified Financial Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.9x13.1%
MLC Mount Logan Capital
 0.3xn/aUS$38.44m
PAY Payfare
0.4x-32.6%US$69.43m
BNXA Banxa Holdings
0.1xn/aUS$24.46m
MLC 0.3xIndustry Avg. 2.9xNo. of Companies7PS0246810+
8 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.9x41.2%
MLC Mount Logan Capital
 0.3xn/aUS$38.44m
No more companies

Price-To-Sales vs Industry: MLC is good value based on its Price-To-Sales Ratio (0.3x) compared to the North American Diversified Financial industry average (2.9x).

Price to Sales Ratio vs Fair Ratio

What is MLC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MLC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate MLC's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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